What happens next?

[the_finster]

Hi

I am a company employed sales manager who has incurred a tax penalty of approx 6k. This figure has been acheived by my naievity over the last few tax years when completing a tax return. Apparently I had not completed all the required fields and ommited things like private healthcare. Pure ignorance on my part that has cost me dear.

I have provided the investigation officer all the information required and have been extremely co operative. I have proved that I cannot afford the 6k via income and my inability to raise a loan due to poor credit history.
They have advised that a local tax collector will be in touch and my details have been passed to them. Can anyone advise what my options might be with the collector. The sum is apparently too large to take back through monthly deductions and I can only afford to offer them £100 per month.

Any advice would be welcome

thanks

[The Ivy Office Ltd]

are you 100% sure that the £6000 bill is correct?

Hmrc do make mistakes plus there are concessions to remove tax bills where the revenue does not make use of information in time

i will be pleased to help you check it

dennis@taxesclear.co.uk

[wamstax]

The crux of matters will be whether you in the past completed tax returns; whether your employer completed forms PX1D; what exactly what is included in the £6K and whether you have been advised of your rights and exhausted all the appeal procedures etc.

I assume that the £6K is not a tax penalty but tax interest (and possibly a penalty) in respect of omitted Benefits in kind? If as you say you genuinely can't afford £6K then I assume also that HMRC haven't cajoled you into making an offer that you can't service. If they have then quite clearly any contract must be null and void as before asking you to sign any voluntary offer document both sides have to genuinely see that the contract (your offer and their acceptance) is capable of being satisfied.

Of course it may just be that they have put in place amendments in which not penalty will have been levied and they will then leave the "Debt Management" side of HMRC to do the dirty work. What you might call a statistical settlement!!!
Clearly you need to get a professional to check it all out. You must have received what we could call a self assessment bill and it must be final and conclusive - I take it that HMRC advised you of your rights of appeal and issued Codes of practice if they were seeking to recover any penalties.
regards
bill@wamstaxltd.com
http://www.wamstaxltd.com